The Minnesota State Colleges and Universities Friends Action Network is a grassroots network of faculty, students, staff, alumni and community members committed to building public support for the Minnesota State Colleges and Universities system's annual legislative requests.

The Chronicle (February 2009): An internal newsletter for the Office of the Chancellor

Thursday, March 31, 2011

The Senate took up the state government finance bill, SF1047, on the floor yesterday and after much discussion and multiple amendments, Senators passed the bill 36-29. The bill, authored by Sen. Mike Parry, R-Waseca, reduces projected spending in state government by 59 percent. Part of that reduction includes a provision that freezes the salaries of state employees for the 2012-2013 biennium. Sen. David Tomassoni, DFL-Chisholm, called the bill an attack on public employees. Republicans have said the reductions in the bill are painful, but necessary and include innovations that will make state government more efficient and affordable.

Once the House passes their version of the bill, a conference committee will be formed to work through the differences. From there, the bill will go to the governor's desk for signature or veto. Gov. Dayton has said he does not want to make the same large reductions to state government. Dayton is requesting legislators pass the conference committee reports for all the appropriation bills and then lay them on the table in order to begin negotiations and reach a budget agreement.

There is some good news in the area of agreement. The agriculture finance omnibus bill passed the floor yesterday evening with bipartisan support, passing with a vote of 104-20. House Minority Leader Paul Thissen, DFL-Minneapolis, said the bill makes honest choices that should be made across the entire budget for a responsible solution for Minnesota.

Wednesday, March 30, 2011

Both the House and Senate took up the respective higher education omnibus bills on the floor yesterday. In the Senate, Higher Education Chair Michelle Fischbach, R-Paynesville, explained SF 924 to members. She said there was a 10.3 percent reduction for the Minnesota State Colleges and Universities system, with cuts to the central office and campuses. Sen. Larry Pogemiller, DFL-Minneapolis, offered an amendment that implements Gov. Dayton's higher education proposal of a 6 percent cut to higher education. In order to pay for the increase in funding, Pogemiller proposed a new fourth tier on the income tax that effects 2.3 percent of all tax filers. Pogemiller said the budget is about priorities this year, and higher education is a priority. After much discussion about the germaneness of the bill (raising an income tax in the higher education bill), the amendment was not adopted.

Sen. Kathy Sheran, DFL-Mankato, said lawmakers have failed to demonstrate that they believe in higher education. She said higher education is the economic engine of the state and provides a return on the state's investment and contributes to the economy. Sheran said a yes vote for the bill advocates for increased tuition payments, canceled courses, faculty lay-offs and a significant brain drain in the state.

Sen. Sandy Pappas, DFL-St. Paul, offered an amendment to repeal the language in the funding policy statute 135A.01, that states it is the intent of the Legislature to provide at least 67 percent of the revenue to public postsecondary institutions in state appropriation. Members spoke that even in times of budget reductions, it is still the intent of the Legislature to support high quality public postsecondary education. The amendment failed unanimously.

Minority Leader Tom Bakk, DFL-Cook, said lawmakers are jeopardizing the future of higher education campuses with the cuts in the bill. In response, Chair Fischbach said the committee was able to put a little more money into the state grant program for students, and make reductions that will not cut so deep. After much discussion on the bill, the Senate higher education finance omnibus bill was approved by a vote of 37-27.

The House later took up their version of the higher education finance omnibus bill, HF 1101. Higher Education Policy and Finance Committee Chair Bud Nornes, R-Fergus Falls, explained the bill and said making the reductions in the bill were not easy, but he believes it's a better alternative than Gov. Dayton's bill that increases taxes. Nornes said the goal for this bill was to make sure students do not bear the brunt of the reductions. He also said the Minnesota State Colleges and Universities system and the University of Minnesota are expected to make up one-third of the lost revenue through tuition increases. Rep. Linda Runbeck, R-Circle Pines, said that maybe the bill will send a message to higher education institutions that they need to start controlling their costs.

Also in his remarks, Chair Nornes recognized Chancellor Jim McCormick and President Bob Bruininks in their retirement this year and thanked them for their leadership to the state of Minnesota.

Three amendments were adopted and incorporated into the bill. The first was a provision introduced by Rep. King Banaian, R-St. Cloud, that prohibits the use of state or federal funds to support human cloning, or to pay for any expenses incidental to human cloning. The Senate version of the bill carries this provision.

Rep. Gene Pelowski, DFL-Winona, introduced the other two amendments that passed. The first amendment sets the salary for the chancellor, vice chancellors and presidents at or below the governor's salary of $120,000; and prohibits the chancellor, vice chancellor and president contracts from providing a bonus payment. The amendment passed by a vote of 89-38. The other amendment authored by Rep. Pelowski requires the Board of Trustees to do a comprehensive evaluation of the structure of the system and report to the Legislature with recommendations for improvements to increase the efficiency and effectiveness of delivering postsecondary education.

The House higher education omnibus bill was approved as amended by a vote of 69-60. The next step in the process is conference committee, where the House and Senate will meet to iron out the differences in the two bills.

Tuesday, March 29, 2011

The Senate did not take up the higher education omnibus bill on the floor yesterday, however they are expected to take it up today. The full Senate did pass the agriculture omnibus bill and the jobs and economic development omnibus bill yesterday.

After nearly 7 hours of debate, the House passed the tax bill yesterday. Some of the main provisions in the bill include a provision that would decrease lower and middle individual income tax rates from their current levels of 5.35 percent and 7.05 percent to 4.75 percent and 6.75 percent, phased in over three years. There is also a proposed phase-out of local government aid to Minneapolis, St. Paul and Duluth; and the bill approves the imposition of a local sales and use tax by several cities and towns.

The House is expected to take up the higher education omnibus bill today as well.

Capitol watchers are wondering how this session will end given the philosophical differences between Gov. Dayton and the Legislature on how to resolve the $5 billion deficit. Dayton yesterday sent a letter to Senate Majority Leader Amy Koch, R-Buffalo and House Speaker Kurt Zellers, R-Maple Grove, that lays out a framework for the budget negotiations based on mutual discussions. Dayton wrote, "I will not agree to any bills containing revenue increases, reductions, or expenditures, until after the Legislature has established and decided upon one complete, comprehensive and balanced budget for the 2012-2013 biennium, either through the passage of all relevant conference reports or some other definitive mechanism. I will not favorably consider a single budget bill without knowing its relationship to a complete and balanced budget solution." Dayton also wrote that he invites lawmakers to initiate a process by removing all extraneous policy items from the spending and tax bills. He referenced Gov. Pawlenty being opposed to the practice of including policy in finance bills and said he agrees with that position.

Today at the Capitol

Today is the DFL primary election in Senate District 66 between Rep. John Lesch and former Rep. Mary Jo McGuire. The special election is necessary to replace former Rep. Ellen Anderson who left to head up the Public Utilities Commission.

10:00 AMSenate in Session

10:00 AMHouse Republicans will hold a media availability on Education and Higher Education with Reps. Pat Garofalo, R-Farmington, and Bud Nornes, R-Fergus Falls in preparation for the floor debate.

Friday, March 25, 2011

The Senate Finance committee and the House Ways and Means committee both met yesterday afternoon and took up the respective higher education omnibus bills. Both committees approved the bills without any additional amendments, and sent them to the floor. Once the bills are taken up on the Senate and House floors, they will go to conference committee to work through the differences between the two bills. I reported on the bill details in prior daily updates, but will again remind you of the reductions to the system.

The Senate bill cuts the Minnesota State Colleges and Universities system $167 million over the biennium from the fiscal year 2012-2013 forecasted base. For comparison purposes, the governor recommended a cut of $75.6 million over the biennium from the 2012-13 forecasted base, and the House bill cuts $201 million from the same base. The Senate bill brings the system's annual base down to $546.8 million, the House bill reduces the system's base to $529.8 million, and the governor's recommendation brings the system's base to $592 million.

Aside from the cuts, the other provision that affects the system's budget is the tuition caps. As a reminder, the Senate higher education bill caps tuition increases for the Minnesota State Colleges and Universities system's four-year institutions at 4 percent and for the two-year institutions at 3 percent. This is a slight change from the House higher education bill that caps the state universities at 4 percent and the two-year colleges at 2 percent.

Looking AheadWith the passage of the finance bills, we can anticipate that the higher education committees will not meet at their scheduled time twice weekly. Hearings will be subject to the call of the chair.

Thursday, March 24, 2011

The Senate Higher Education committee met yesterday afternoon and into the evening to mark-up the higher education omnibus bill. Presidents Edna Szymanski of Minnesota State University Moorhead and Larry Litecky of Century College requested the support of committee members for local control of tuition. The Senate higher education bill caps tuition increases for the Minnesota State Colleges and Universities system's four-year institutions at 4 percent and for the two-year institutions at 3 percent. This is a slight change from the House higher education bill that caps the state universities at 4 percent and the two-year colleges at 2 percent. President Litecky said that honoring the local control of tuition-setting is a concern for all the colleges and universities in the system. Litecky said the result of tuition caps and the cut in the bill could mean fewer class offerings for students. Sen. Ron Latz, DFL-St. Louis Park, said that cuts to the system today will cost students and the state additional money in the long run, because students will not be able to get the classes they need and therefore will not be able to graduate on time.

In addition to the tuition caps in the bill, the bill cuts the Minnesota State Colleges and Universities system $167 million over the biennium from the fiscal year 2012-2013 forecasted base. For comparison purposes, the governor recommended a cut of $75.6 million over the biennium from the 2012-13 forecasted base, and the House bill cuts $201 million from the same base. The Senate bill brings the system's annual base down to $546.8 million, the House bill reduces the system's base to $529.8 million, and the governor's recommendation brings the system's base to $592 million. If you have any questions about the numbers, feel free to call.

The Senate bill also specifies that if there are any salary savings to the Minnesota State Colleges and Universities system caused by legislation that limits, reduces, or eliminates salary increases in any other bill, that savings is to be used to mitigate tuition increases or allocated to institutions under the Board of Trustees allocation model.

The Senate bill also includes the provision on senior citizen tuition age, as does the House bill. The language reduces the age of a senior citizen in statute to be eligible to receive reduced tuition back to age 62 from 66 (the statute was changed in 2010 from 62 to 66). Also similar to the House bill, the Senate bill sets a statutory amount for the tuition and fee maximum used to calculate the state grant award to the highest tuition and fees charged by a Minnesota public college for two-year programs, and the highest average tuition and fees charged by a Minnesota public university for four-year universities. The bill also sets the living and miscellaneous expense allowance, or LME, at $7,000 each year.

After a few amendments, none that affect the system, committee members passed the bill as amended, by a vote of 7-6. The bill heads next to the Finance committee today after session. Session begins at 11:00, so it is anticipated the hearing will start around noon. In the House, the higher education omnibus bill will also be heard today in the Ways and Means committee. Ways and Means is scheduled to meet after session to the call of the chair.

Wednesday, March 23, 2011

The House Higher Education Policy and Finance committee met yesterday afternoon to go through the omnibus bill and take testimony. The committee returned in the evening to finish testimony and take amendments to the bill. After multiple proposed amendments, the bill passed as amended by a vote of 8-6 and was referred to the Ways and Means committee. Ways and Means is scheduled to take up the bill Thursday afternoon at 1:00 p.m. or to the call of the chair.

President Pat Johns, Lake Superior College, told committee members that his college is trying to serve more students at the same time lawmakers are proposing a tuition cap of 2 percent at the two-year colleges, which limits what the college can do to serve these students. Johns said the Board of Trustees should set tuition rates after the colleges and universities go through the consultation process at the local level.

One of the amendments adopted that affects the Minnesota State Colleges and Universities system includes an amendment by Rep. Gene Pelowski, DFL-Winona, that says none of the direct appropriations for operation and maintenance of the system may be used for new transformational initiatives. The tuition cap for the University of Minnesota was amended to an increase of 5 percent each year of the biennium. Rep. Tom Rukavina, DFL-Virginia, also attempted to amend the Minnesota State Colleges and Universities system's tuition cap in the bill of 2 percent for two-year colleges and 4 percent for four-year universities, to an "up to" 5 percent increase each year for both two-year and four-year institutions. The amendment did not pass. Rukavina attempted another amendment to increase tuition each year for the system to 4 percent each year. This amendment also failed.

Chair Bud Nornes, R-Fergus Falls, said higher education has not caused the state deficit, but to right-size the state, lawmakers have to balance the budget in a way that sustains itself. Nornes said he realizes it's going to be painful and wishes it didn't have to be done.

The Senate Higher Education omnibus bill will be taken up today at 3:00 p.m. with the likelihood of a long hearing into the evening hours.

Tuesday, March 22, 2011

The Senate Higher Education committee met yesterday afternoon to take up a variety of bills including the governor's higher education proposal, SF 897, authored by Sen. Kathy Sheran, DFL-Mankato, which as a reminder contains a 6 percent reduction to the Minnesota State Colleges and Universities system. As the committee puts together their omnibus bill, members laid SF 897 over for possible inclusion. Chair Michelle Fischbach, R-Paynesville, said committee members will take up the omnibus bill Wednesday at 3:00 p.m. and hear testimony from interested parties. The committee will then reconvene in the evening to take amendments.

The House Higher Education Policy and Finance committee is scheduled to meet today at 12:30 to mark-up the bill, and will reconvene at 5:30, also in the basement hearing room of the State Office Building to finish if necessary. Proposed amendments for the bill can be found at the below links:

Also yesterday was a proposal passed by House Rules committee members that sets the 2012 session start date the beginning of March. The second year of the biennium is the capital budget year and typically shorter than a budget year. The bill now heads to the House State Government Finance committee for consideration in the committee's omnibus bill.

Friday, March 18, 2011

The House Higher Education Policy and Finance committee released its higher education finance bill yesterday. The bill includes significant reductions to the Minnesota State Colleges and Universities system. The Legislature looks at both the 2012-2013 forecasted base as well as the 2010-2011 base, which drives different percentages. If reduced from the 2012-13 forecasted base (which is what the governor's proposal does), it's a cut to the system of 16 percent. If reduced from the 2010-2011 base, it's a cut of 13.3 percent to the system. Either way you look at it, the reduction brings the system's annual base down to $528.7 million.

The bill caps tuition and mandatory fees for a Minnesota resident undergraduate at 4 percent per year for the state universities and 2 percent per year for the state colleges. A provision is also included that encourages the Board of Trustees to offer entering students a plan providing stable tuition for students pursuing two-year or four-year degrees.

The bill also holds back 1 percent of the fiscal year 2013 appropriation to the system until after the Board of Trustees demonstrates the system has achieved at least three of five goals. You may recall a similar process from the 2007 legislative session. The Board is also required to place the highest priority on meeting the needs of Minnesota employers for a skilled workforce. They are to focus on efficient delivery of higher education, eliminate duplication throughout the system and provide an education that prepares students for the workforce needs of Minnesota.

Other provisions in the bill include reducing the age of a senior citizen in statute to be eligible to receive reduced tuition back to age 62 from 66 (the statute was changed in 2010 from 62 to 66); and language regarding transfer that reads by Feb. 15, 2012, the Board of Trustees must adopt a policy requiring every college and university in the system to grant credit for a course taken for credit at any of the colleges or universities in the system. The transfer provision also addresses the transferability of credits from 2+2 programs, including the Anoka STEP program.

In relation to the state grant program, the bill makes whole the 2012-13 state grant projected deficit of $34 million, and sets a statutory amount for the tuition and fee maximum used to calculate the state grant award to the highest tuition and fees charged by a Minnesota public college for two-year programs, and the highest average tuition and fees charged by a Minnesota public university for four-year universities. The bill also sets the living and miscellaneous expense allowance, or LME, at $7,000 each year.

The bill also repeals the requirement for public institutions to sell American-made clothing and apparel in their bookstores to the extent possible; the requirement that public employers purchase or require employees to furnish uniform or protective accessories that are made in America; the matching state grant program that is part of the Minnesota College Savings plan; and the requirement to provide one-time Achieve grants to students who were eligible before Jan. 1, 2009 and have not yet been awarded the grant.

The committee is expected to mark-up the bill Tuesday at 12:30 p.m. If they do not finish by the end of the scheduled time at 2:15, they will reconvene at 5:30 p.m. to pass the bill. We expect the Senate to release their higher education finance bill Monday.

Thursday, March 17, 2011

The U.S. Census Bureau released the 2010 census data for Minnesota yesterday, which legislators will now use in what is known as redistricting, or redrawing the districts to ensure equal population for the congressional and legislative districts in the state. According to Tom Gillaspy, State Demographer, the 2nd and 6th congressional districts have to give up population to ensure every district has equal representation, while the rest of the congressional districts have to pick up population. The numbers can be found at the Department of Administration Office of Geographic and Demographic Analysis, State Demographic Center Web site.

4:00 PM (or 30 minutes after session)House State Government FinanceRoom: 200 State Office BuildingChair: Rep. Morrie LanningAgenda: HF864 (Peppin) Commissioner of revenue authorized to enter into a reciprocal agreement with the federal government for collection of unpaid debts.HF1063 (Murray) Counties permitted to perform private audit meeting standards of state auditor. HF1031 (Stensrud) Legislative Coordinating Commission joint administrative services required to provide or arrange for the service to both the house of representatives and senate.HF681 (Downey) Minnesota pay for performance pilot program established, funding provided, bonds issued, and money appropriated.HF1090 (Stensrud) Commissioner of management and budget required to issue a proposal request and enter into a contract for dependent audit verification for state employee health plans. Minnesota House of Representatives budget overview

Wednesday, March 16, 2011

The House Higher Education Policy and Finance committee heard HF 849 yesterday, a bill introduced by Committee Chair Bud Nornes, R-Fergus Falls, that attempts to eliminate mandates in statute. Nornes said as committee chair he has been looking for relief from mandates this session and chose to eliminate four that include; the prohibition of higher education institutions entering into agreements with credit card companies to market to undergraduate students; the mandate that requires notice to be provided to students regarding possible impact of obtaining a job in certain fields for students with a criminal record; the requirement that to the extent possible bookstores sell clothing made in America; and the requirement that a public employer, including the Minnesota State Colleges and Universities, is prohibited from knowingly purchasing or acquiring , furnishing, or requiring an employee to purchase or wear while on duty, any items not made in America.

The bill was amended to remove the repealer of the mandate that requires notice to be provided to students regarding possible impact of obtaining a job in certain fields for students with a criminal record, and was then laid over for possible inclusion in the omnibus bill.

Tuesday, March 15, 2011

The House Ways and Means committee adopted the budget targets yesterday morning by a vote of 17-13. Committee Chair Mary Liz Holberg, R-Lakeville, said, "We feel that these numbers are living within our means, and that we'll be able to meet the necessary needs of the state in the numbers reflected in this target."

Rep. Tom Rukavina, DFL-Virginia, offered an amendment to lessen the cut of 16 percent to higher education to reflect Gov. Dayton's proposal of a 6 percent reduction. Rep. Phyllis Kahn, DFL-Minneapolis, said higher education institutions train the workforce, which in this economy is far more valuable than business tax cuts. The amendment did not pass. The Higher Education committees have a little less than two weeks to determine how to handle the cut.

In the House State Government Finance committee yesterday, members heard HF 756, a bill that provides that during the 2012-13 biennium, executive branch appointing authorities must construct a performance bonus component, under which at least five percent of base salary and wages otherwise payable may be paid only after completion of the performance evaluation and upon the appointing authority's determination that the employee's performance has been satisfactory and justifies spending additional public funds.

The bill was laid over for possible inclusion in the committee's omnibus bill. Committee Chair Morrie Lanning, R-Moorhead, said the committee will begin mark-up of the omnibus bill next week.

Today at the Capitol

8:15 AMHouse Education ReformRoom: Basement State Office BuildingChair: Rep. Sondra EricksonAgenda:HF638 (Myhra) School grading system created, school recognition program created, school report cards modified, rulemaking authorized, and report required.HF558 (Downey) Graduation-Required Assessment for Diploma mathematics exception removed. HF329 (Bills) Public school employees prohibited from using public funds and resources to advocate to pass, elect, or defeat a political candidate, ballot question, or pending legislation.

12:30 PMHouse Education FinanceRoom: 5 State Office BuildingChair: Rep. Pat GarofaloAgenda: HF783 (Garofalo) Number of public school pupils covered by the permanent fund endowment apportionment expanded. HF879 (Erickson) Annual evaluations for principals established, and a group of experts and stakeholders convened to recommend a performance-based system model for these evaluations. HF360 (Peterson) School district requirement clarified that a school district is not required to provide educational services to students without disabilities from other states.

3:00 PMSenate Higher EducationRoom: 107 CapitolChair: Sen. Michelle L. FischbachAgenda:S.F. 698-Magnus: University of Minnesota (U of M) agriculture experiment station and extension service appropriationPresentation on the Agricultural Special by the University of MinnesotaS.F. 342-Bakk: Cook county higher education board educational programs and academic support services appropriation.

Friday, March 11, 2011

Republican leadership announced the budget targets yesterday. Senate Majority Leader Amy Koch, R-Buffalo, said government needs to live within their means and Republican senators do not support tax increases. She said they implemented aggressive budget deadlines, and now the targets are turned over to committee chairs who will work to meet the March 25 deadline.

Sen. Geoff Michel, R-Edina, said, "We're building a budget on what is currently in Minnesota's checking account." Michel said this is a framework, but doesn't include any details. He said that's what the committee process is for.

For higher education, the budget target is about a 16 percent reduction, which brings the proposed spending level for all of higher education to $2.505 billion. Gov. Dayton's budget proposal for higher education puts the fiscal year 2012-13 spending at $2.745 billion, a difference of $240 million.

We now turn our attention to the higher education committees in the Senate and House to see how they recommend spreading the cut. The Senate Higher Education committee has said they expect to pass a budget bill March 23 and the House Higher Education committee has indicated discussion of a budget bill in committee on March 22.

Today at the Capitol

Gov. Mark Dayton is on the Iron Range today, and one of his stops will include Mesabi Range Community and Technical College.

Thursday, March 10, 2011

In the Senate Higher Education committee, members heard about credit transfer within the Minnesota State Colleges and Universities system. Sen. Michael Jungbauer, R-East Bethel, presented SF 603, a bill that requires the Minnesota State Colleges and Universities system to adopt a policy requiring colleges and universities to grant credit for a course that is taken for credit at any college or university in the system. In reference to credits transferring between institutions, Jungbauer said, "Calculus is calculus, biology is biology."

Mike Lopez, Associate Vice Chancellor for Student Affairs for Minnesota State Colleges and Universities informed committee members about the Board of Trustees' commitment to credit transfer. Lopez said legislation passed last session to develop a policy to improve transfer within the system, and from that, the Smart Transfer Plan was developed.

As reported earlier, the plan includes; establishing course outlines available on all college and university Web sites; e-Transcripts, which is an electronic transcript process for transfers within the system; a policy that clarifies that DARS and u.select databases are the official repository of course equivalencies between system colleges and universities; enhancements to the student appeals process, and information available to students; and continuous training for college and university staff who advise students in the area of transfer.

Don Larsson, President of the Inter Faculty Organization, or IFO, told committee members that the IFO supports a smooth transfer process, but the bill is unnecessary given the Minnesota State Colleges and Universities system already has a process in place based on last session's legislation, with a purpose of transparency. Larsson said if the bill were to pass as written, it could undo much of what's already been done.

Also yesterday, Gov. Mark Dayton selected Sen. Ellen Anderson, DFL-St. Paul, to head the Public Utilities Commission. A special election is now necessary in Senate District 66. Dayton has scheduled the primary election for March 29 and the general election for April 12.

Today at the Capitol

Senate Republican leadership will release budget targets at a 10:30 news conference this morning. House Republican leaders have delayed the announcement of their targets. They are expected to announce their targets sometime this afternoon.

8:15 AMHouse Education ReformRoom: Basement State Office BuildingChair: Rep. Sondra EricksonAgenda:HF360 (Peterson) School district requirement clarified that a school district is not required to provide educational services to students without disabilities from other states.HF879 (Erickson) Annual evaluations for principals established, and a group of experts and stakeholders convened to recommend a performance-based system model for these evaluations.HF638 (Myhra) School grading system created, school recognition program created, school report cards modified, rulemaking authorized, and report required.